Mid­dle East­ern air­lines’ freight vol­umes rise 5% in Oc­to­ber: IATA

Gulf Times Business - - AVIATION BUSINESS -

Mid­dle East­ern air­lines’ freight vol­umes ex­panded 5% in Oc­to­ber com­pared to the same pe­riod a year ear­lier, In­ter­na­tional Air Trans­port As­so­ci­a­tion has said in a re­port. Ca­pac­ity in­creased by 8.8% over the same pe­riod. There are signs of a pick-up in sea­son­ally-ad­justed in­ter­na­tional air cargo de­mand helped by more trade to and from Europe and Asia, it said. Re­leas­ing data for global air freight mar­kets IATA said de­mand, mea­sured in freight tonne kilo­me­tres (FTKs), rose 3.1% in Oc­to­ber 2018, com­pared to the same pe­riod the year be­fore. This pace of growth was up from a 29-month low of 2.5% in Septem­ber.

Freight ca­pac­ity, mea­sured in avail­able freight tonne kilo­me­tres (AFTKs), rose by 5.4% year-onyear in Oc­to­ber this year. “This was the eighth month in a row that ca­pac­ity growth out­stripped de­mand,” IATA said. Grow­ing in­ter­na­tional e-com­merce and an up­turn in the global in­vest­ment cy­cle are sup­port­ing the growth. How­ever, de­mand con­tin­ues to be neg­a­tively im­pacted by a con­trac­tion in ex­port or­der books in all ma­jor ex­port­ing na­tions in Oc­to­ber; longer sup­plier de­liv­ery times in Asia and Europe; weak­ened con­sumer con­fi­dence com­pared to very high lev­els at the be­gin­ning of 2018, IATA noted.

IATA’s Di­rec­tor Gen­eral and CEO Alexan­dre de Ju­niac said, “Cargo is a tough busi­ness, but we can be cau­tiously op­ti­mistic as we ap­proach the end of 2018. Slow but steady growth con­tin­ues de­spite trade ten­sions. The growth of e-com­merce is more than mak­ing up for slug­gish­ness in more tra­di­tional mar­kets. And yields are strength­en­ing in the tra­di­tion­ally busy fourth quar­ter. We must be con­scious of the eco­nomic head­winds, but the in­dus­try looks set to bring the year to a close on a pos­i­tive note.”

Asia-Pa­cific air­lines saw de­mand for air freight grows by 1.9% in Oc­to­ber 2018, com­pared to the same pe­riod last year. This pace of growth was rel­a­tively un­changed from the pre­vi­ous month.

Weaker man­u­fac­tur­ing con­di­tions for ex­porters, and longer sup­plier de­liv­ery times par­tic­u­larly in China and Ko­rea im­pacted the de­mand. As the largest freight-fly­ing re­gion, car­ry­ing more than one-third of the to­tal, the risks from ris­ing trade ten­sions are dis­pro­por­tion­ately high. Ca­pac­ity in­creased by 4.2%.

African car­ri­ers saw freight de­mand de­crease by 4.2% in Oc­to­ber 2018, com­pared to the same month last year. This was the sev­enth time in eight months that de­mand shrank. Ca­pac­ity in­creased by 5.4% year-on-year. De­mand con­di­tions on all key mar­kets to and from Africa re­main weak. “None­the­less, sea­son­allyad­justed in­ter­na­tional freight vol­umes have stopped de­clin­ing and re­cov­ered sharply in re­cent months,” IATA said.

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